The coming week will mark a crucial turn in the US economy’s direction for the coming months. First, more than 9 million Americans will lose their federal unemployment extension benefits Thr…
First, more than 9 million Americans will lose their federalextension benefits Three programs covering 12.1 million people end on Monday, leaving the unemployed reliant on state benefits or finding a job in an economy whose August report indicated a tightening employment market.
The federal programs include Pandemic Unemployment Assistance , which provided longer-term unemployment relief for those that exhausted regular state unemployment benefits. It included Pandemic Emergency Unemployment Compensation, which are benefits for gig workers and contractors who did not qualify for regular state programs. Federal benefits included enhanced $300 per-week payments on top of regular state jobless benefits.
Now comes the evidence portion of several theories. Were the extended benefits keeping people from a serious job search, as some economists contend? Did the Covid-19 surge intimidate potential workers from seeking a job? And what jobs will be available in an economy that is still recovering from the pandemic, which saw a number of businesses permanently close and/or reduce work forces to accommodate the new levels of spending by consumers?data at the producer level.
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